Towards Robust, Authoritative Assessments of Environmental Impacts Embodied in Trade: Current State and Recommendations

Bulavskaya

et al. 2018

Self Cite

673

510

SummaryEnvironmentally extended multiregional input-output (EE MRIO) tables have emerged as a key framework to provide a comprehensive description of the global economy and analyze its effects on the environment. Of the available EE MRIO databases, EXIOBASE stands out as a database compatible with the System of Environmental-Economic Accounting (SEEA) with a high sectorial detail matched with multiple social and environmental satellite accounts. In this paper, we present the latest developments realized with EXIOBASE 3-a time series of EE MRIO tables ranging from 1995 to 2011 for 44 countries (28 EU member plus 16 major economies) and five rest of the world regions. EXIOBASE 3 builds upon the previous versions of EXIOBASE by using rectangular supply-use tables (SUTs) in a 163 industry by 200 products classification as the main building blocks. In order to capture structural changes, economic developments, as reported by national statistical agencies, were imposed on the available, disaggregated SUTs from EXIOBASE 2. These initial estimates were further refined by incorporating detailed data on energy, agricultural production, resource extraction, and bilateral trade. EXIOBASE 3 inherits the high level of environmental stressor detail from its precursor, with further improvement in the level of detail for resource extraction. To account for the expansion of the European Union (EU), EXIOBASE 3 was developed with the full EU28 country set (including the new member state Croatia). EXIOBASE 3 provides a unique tool for analyzing the dynamics of environmental pressures of economic activities over time.

Section: Discussionmentioning

confidence: 99%

EXIOBASE 3: Developing a Time Series of Detailed Environmentally Extended Multi‐Regional Input‐Output Tables

Stadler

Bulavskaya

et al. 2018

Self Cite

673

510

“…More work needs to be done in this area, but at the same time, the institutionalization of MRIO and footprint‐based approaches in, for example, the OECD (Yamano ), will allow for the research frontier to move in this direction (Tukker et al. ).…”

Section: Discussionmentioning

confidence: 99%

Growth in Environmental Footprints and Environmental Impacts Embodied in Trade: Resource Efficiency Indicators from EXIOBASE3

Stadler

Simas

et al. 2018

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170

107

SummaryMost countries show a relative decoupling of economic growth from domestic resource use, implying increased resource efficiency. However, international trade facilitates the exchange of products between regions with disparate resource productivity. Hence, for an understanding of resource efficiency from a consumption perspective that takes into account the impacts in the upstream supply chains, there is a need to assess the environmental pressures embodied in trade. We use EXIOBASE3, a new multiregional input-output database, to examine the rate of increase in resource efficiency, and investigate the ways in which international trade contributes to the displacement of pressures on the environment from the consumption of a population. We look at the environmental pressures of energy use, greenhouse gas (GHG) emissions, material use, water use, and land use. Material use stands out as the only indicator growing in both absolute and relative terms to population and gross domestic product (GDP), while land use is the only indicator showing absolute decoupling from both references. Energy, GHG, and water use show relative decoupling. As a percentage of total global environmental pressure, we calculate the net impact displaced through trade rising from 23% to 32% for material use (1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011), 23% to 26% for water use, 20% to 29% for energy use, 20% to 26% for land use, and 19% to 24% for GHG emissions. The results show a substantial disparity between trade-related impacts for Organization for Economic Cooperation and Development (OECD) and non-OECD countries. At the product group level, we observe the most rapid growth in environmental footprints in clothing and footwear. The analysis points to implications for future policies aiming to achieve environmental targets, while fully considering potential displacement effects through international trade.

“…Hence, acceptance of such science‐led GMRIOs in the statistical community is not as good as it ideally would be. As described in more detail in the contribution of Tukker and colleagues (), the acceptance gap can be overcome by the following. Harmonized extensions could be created.…”

Section: Discussionmentioning

confidence: 99%

“…The last paper in this special issue (Tukker et al. ) uses such information and the insights obtained in this special issue to propose a strategy for creating a robust, credible GMRIO for footprint analysis. More specifically, the work done for this special issue sets out to move the state of the art on the topics above in the following ways.…”

Section: Approaches Based On Global Multiregional Input‐output Analysismentioning

confidence: 99%

“…Finally, Wood and colleagues () propose a framework that demonstrates the usefulness of MRIO databases such as EXIOBASE V3 in assessing the impact of policy measures—both geospatially, and in terms of supply‐chain impact. Such approaches can give quick estimates based on exploiting EXIOBASE V3 to give the potential savings and rebounds of a technical implementation of a policy measure, but by no means replace detailed studies. Credibility for official statistical agencies : Tukker and colleagues () discuss how, based on knowledge of factors that create most uncertainty in footprint analyses, steps can be made toward constructing GMRIOs in a way that they become gradually more acceptable as a tool for use in official statistics. From the available evidence, it turns out that the environmental extensions, rather than the redistribution to final consumption via economic structure reflected by a specific GMRIO, forms the highest source of uncertainty.…”

Section: Approaches Based On Global Multiregional Input‐output Analysismentioning

confidence: 99%

See 1 more Smart Citation

Recent Progress in Assessment of Resource Efficiency and Environmental Impacts Embodied in Trade: An Introduction to this Special Issue

Tukker

Giljum

2018

Self Cite

Summary This paper serves as an introduction to this special issue on the use of multiregional input‐output modeling in assessments of natural resource use and resource use efficiency. Due to globalization, growth in trade has outpaced growth in global gross domestic product (GDP). As a consequence, impacts of consumption of a country increasingly take place abroad. Various methods have been developed to perform so‐called footprint analyses. We argue that global multiregional input‐output (GMRIO) analysis has the largest potential to provide a consistent accounting framework to calculate a variety of different footprint indicators. The state of the art in GMRIO has, however, various shortcomings, such as limited sector and regional detail and incomplete extensions. The work presented in this special issue addresses a number of such problems and how to possibly overcome them, focusing on the construction of a new GMRIO database (EXIOBASE V3). This database includes long time series in both current and constant prices, a high level of product and sector detail, a physical representation of the world economy, and allows analyzing which footprints out of the many possible indicators provide most information for policy making. Various options for empirical analyses are presented in this special issue. Finally, we analyze how GMRIOs can be further standardized and gradually moved from the scientific to the official statistical domain.